I just bought/sold (Part 7)

[Buunari]

Today, the rest of Gofore shares were sold. I still consider it a top company in the industry, but I’m starting to see the scenario Verneri pondered in the IT services sector discussion as very likely. Especially as Gofore seeks growth in the DACH region, where I don’t believe it will achieve +10% profitability margins.

@Verneri_Pulkkinen

I’ve been wondering if the profitability in Finland in the 2010s was exceptionally good? Should the Rule of 20 rather be the rule of 10, because in the much larger German IT services market, a ~5% EBITA margin seems to be the norm, not the Nordic “just under ten”. If the industry grows at the pace of nominal GDP, 3-5%, then ten would be a normally good performance.